Dear Lucidao community,
The present proposal is to consider the possibility to allocate LCD tokens sitting in the DAO vault as an incentive for FARMS.
A liquidity farm is a place to stake your LP pair (i.e. LCD/USDT - LCD/MATIC) to earn rewards. Lucidao farms will provide an incentive for LCD holders who provide liquidity to the QuickSwap DEX. These incentives could include $QUICK and $LCD tokens.
The goal of launching farms on QuickSwap is to:
- Provide more liquidity and therefore allow the distribution of more LCD utility tokens through farming rewards.
- As the liquidity grows, outsiders, institutional contributors, and Oracles willing to gain voting power, will be able to purchase higher amounts of LCD tokens from the market without suffering from high slippage.
- A growing liquidity will contribute to the ecosystem’s confidence in Lucidao and will help Lucidao scale faster.
In order to achieve this goal, we are proposing to allocate 3% of the total supply (26.4M LCD), coming from Governance’s vault - this will allow us to provide the rewards for Liquidity Providers participating in Lucidao pools.
We believe that 3% will be sufficient to provide healthy rewards to our LCD holders providing liquidity.
The above allocation would be distributed as a reward over a year (365days).
LCD rewards for farming (26.4M) will be transferred to: 0x6270B1D09c8e9ED2bB382FFe4c5aB6494BcE75e0 (on Polygon Network)